Backed by Engel and Haitian International, This Plastic Machinery Supporting Enterprise Targets the 20 Billion Screw Barrel Market

On October 24, 2025, Zhejiang Huaye Plastic Machinery Co., Ltd. (stock code: 301616.SZ) released its third-quarter financial report for 2025. The data shows that the company's operating revenue for the first three quarters reached 739 million yuan, a year-on-year increase of 11.08%; the net profit attributable to shareholders of the listed company was 181 million yuan, a substantial year-on-year increase of 143.68%.

In the third quarter alone, Zhejiang Huaye's operating revenue was 261 million yuan, marking a year-on-year increase of 12.05%, and its net profit reached 133 million yuan, soaring by 350.62% year-on-year. This impressive performance not only surpasses the industry average but also highlights Zhejiang Huaye's strong competitiveness as a leading enterprise in the field of plastic machinery components.

Zhejiang Huaye, established in 1994, is headquartered in Jintang Town, Zhoushan, Zhejiang, known as the "Capital of Plastic Machine Screws." The company has long focused on the research, development, production, and sales of core components for plastic molding equipment. In March 2025, the company successfully went public on the Growth Enterprise Market, with an opening price of 57.15 yuan per share and a rise of 173.8%, marking a new stage in its development. The excellent performance in this financial report is a concentrated reflection of the company's years of technological accumulation and market expansion achievements.

Image source: Zhejiang Huaye official website

1. Financial Report Overview: Significant Profit Growth and Steady Performance Improvement

The financial data of Zhejiang Huaye for the first three quarters of 2025 reflects a qualitative leap in the company's profitability. The net profit increased by 143.68% year-on-year, significantly higher than the revenue growth of 11.08%, indicating a remarkable improvement in the company's profit margin.

This growth is not accidental, but rather stems from product structure optimization and cost control. The net profit increase in the third quarter reached 350.62%, mainly benefiting from the increase in sales of high value-added products and improvements in operational efficiency.

Based on historical data, the company's performance has been continuously improving. In 2024, benefiting from industry recovery and increased downstream demand, the company's annual revenue for 2024 is 892 million yuan, a year-on-year increase of 21.20%. The net profit attributable to shareholders of the parent company for 2024 is 108 million yuan, a year-on-year increase of 32.36%. Combined with the third-quarter report of 2025, the company has maintained a growth trend for several consecutive years.

In terms of market share, from 2021 to 2024, the market share of the company's main products increased from 10% to 13.2%, ranking first in the domestic industry for four consecutive years.

Source: Zhejiang Huaye

Section 2: Product and Technology Analysis: The Core Driver of Profit Growth

Behind Zhejiang Huaye's substantial profit growth are its strong product capabilities and technological advantages. The company's main products include screws, barrels, tie bars, and related accessories, which are core components of plastic molding equipment and are widely used in the automotive, home appliance, 3C products, and plastic packaging sectors.

Image source: Zhejiang Huaye

The following analyzes the reasons for growth from the perspective of product innovation and technological breakthroughs.

1. High-end and Customized Solutions for Products

Zhejiang Huaye initially focused on standard parts, but as downstream industries upgraded, the company shifted to providing customized solutions. For instance, in 2023, the company assisted Yizumi in developing an 8500-ton ultra-large precision intelligent injection molding equipment by supplying high-quality screws with a diameter of 270mm. Utilizing its independently developed PTA "double-layer cladding" process, it achieved a maximum pressure resistance of 450 MPa, realizing self-control over the core components of ultra-large injection molding machines.

This customization capability enhances the premium pricing power of the company's products, directly driving profit growth.

The company's product line is comprehensive, with HPT series screws and HK bimetallic barrels meeting the injection molding requirements for PEEK materials. PEEK, as a semi-crystalline polymer, is characterized by its lightweight, high strength, and high-temperature resistance. It is hailed as a "material of the future" and is used in high-end fields such as aerospace, automotive, and medical industries.

Zhejiang Huaye has taken the lead in this field, significantly enhancing the added value of its products. Additionally, the company's twin-barrel injection compression process is an industry-leading technology that meets the needs for high-speed, efficient, and precise molding of ultra-large injection equipment.

2. Leading industry technology parameters and continuous investment in R&D.

The technological advantage is the core competitiveness of Zhejiang Huaye. The company has continuously surpassed industry standards and Zhejiang manufacturing group standards in key parameters such as nitriding surface hardness, quenching hardness, and surface roughness, with key technical indicators of its products consistently leading the industry.

In terms of research and development, the R&D expenses for the first half of 2025 amounted to 14.9185 million yuan, representing a year-on-year growth of 12.83%. The R&D expense ratio has consistently remained above 5% over the past five years, reflecting the company's emphasis on innovation. Currently, Zhejiang Huaye has obtained a total of 17 invention patents, with the total number of patents reaching 132. Core processes such as "multi-axis linkage nano-level polishing technology" and "gradient wear-resistant layer composite technology" have set performance benchmarks in the industry.

In the first half of 2025, the company has over 10 ongoing research projects focusing on the development of new processes and products in the fields of barrels, screws, and tie bars, such as PEEK materials and fluoroplastic films, to reserve momentum for future growth.

The company also leads the direction of technological development and consolidates technical barriers by participating in the formulation of industry standards. In terms of R&D model, Zhejiang Huaye focuses on collaborative innovation with customers. According to General Manager Xia Yujian, the company has built a shared platform for customers and factories, enabling "user-direct manufacturing," allowing customers to track product progress in real-time. This model enhances customer loyalty and promotes technological iteration.

3. Production Management and Intelligent Upgrading

Zhejiang Huaye has enhanced production efficiency through intelligent transformation, indirectly contributing to profit growth. The company has introduced automated and intelligent equipment and software to smartly transform its production lines, integrating them with the existing system.

The company has obtained ISO9001, ISO14001, and ISO45001 certifications. In 2022, it was awarded the national title of "Green Factory" and was recognized as a "Waste-Free Factory" by Zhejiang Province. Intelligent production has reduced labor costs and improved quality stability, enabling the company to undertake large international orders.

In terms of management, in 2016, the company collaborated with McKinsey to introduce an internationally advanced management system, enhancing operational efficiency. Although this decision initially faced resistance, it ultimately helped the company secure orders from international clients such as Engel and Husky, achieving a leap in production capacity and competitiveness.

4. Market Expansion and Customer Base

The deep binding of customer resources provides assurance for the company's growth.

Zhejiang Huaye has established long-term stable cooperative relationships with numerous leading plastic molding equipment manufacturers both domestically and internationally. Its overseas clients mainly include Engel.), HuskyKraussMaffei), Sumitomo Demag (Demag), MilacronDavis-StandardThe domestic clients mainly include Yizhiming, Fuqiangxin, Datong Machinery, Haitian International, Tairui Machinery, Huayan Precision Machinery, and Zhenxiong Group.

In terms of market space, China's plastic machinery industry is enormous, with a production of approximately 120 million tons of primary form plastics in 2023, and industry revenue exceeding one trillion yuan. With the development of Industry 4.0 and the Internet of Things, the demand for intelligent and automated equipment is increasing. Zhejiang Huaye, as an upstream enterprise in the industrial chain, benefits from the trends of domestic substitution and customization. For example, the demand for plastic products in overseas markets such as Saudi Arabia is surging, and China's cost-effective injection molding machines are favored, bringing new opportunities to the company.

Section 3, 5.68%Opportunities Behind Annual Compound Growth

The outstanding performance of Zhejiang Huaye in the third quarter report of 2025 is the result of the synergy of multiple factors including technology, products, and market. The substantial profit growth stems from: firstly, the increase in the proportion of high value-added products, such as equipment related to PEEK materials; secondly, pricing power brought by technological leadership; thirdly, cost reduction and efficiency improvement through intelligent production; and fourthly, global market expansion.

Looking ahead, the plastic machinery industry has a bright future. As a major global producer, consumer, and exporter of plastic machinery, China provides fertile ground for Zhejiang Huaye. It is expected that by 2030, the market size of China's screw barrel will exceed 20 billion yuan, with a compound annual growth rate of 5.68%, providing growth opportunities for Zhejiang Huaye.

At the same time, the company will continue to embrace industrial internet and AI technology to enhance efficiency. The progression of Zhejiang Huaye from "Made in China" to "Intelligent Manufacturing in China" highlights the resilience of specialized, sophisticated, and innovative enterprises.

Editor: Lily

Material sources: Zhejiang Huaye, China Economic Net, Shanghai Securities Journal, Zhuangsu Shijie, Jingjian News, and other public materials.